Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.
Samsung Electronics plans record shareholder return of up to $79.6 bil.
Samsung Electronics' headquarters in Gangnam District, Seoul, Friday / Yonhap
By Lee Gyu-lee
Chipmaker's 2026 payout nearly 5 times its 2020 record as AI-driven earnings boost cash generation
Samsung Electronics expects to return up to 110 trillion won ($79.6 billion) to shareholders this year, marking the largest shareholder payout ever by a domestic company.
The chipmaker announced Friday that its board approved a shareholder-return plan totaling an estimated 90 trillion won to 110 trillion won for 2026, including about 30 trillion won in cash dividends to be paid in the third quarter. The exact amount and terms will be finalized at a board meeting in late October.
The figure is nearly five times the company’s previous annual record of about 20.3 trillion won in 2020 and more than nine times its regular annual dividend of 9.8 trillion won under its current three-year policy.
The large payout comes in the final year of the company’s shareholder-return policy from 2024 to 2026, under which it pledged to use 50 percent of its free cash flow for shareholder returns.
“The record shareholder return is intended to ensure that the benefits of the company’s growth are shared meaningfully with shareholders, helping sustain a virtuous cycle between its growth and enhanced shareholder value,” the company said.
“It also faithfully implements Samsung Electronics’ three-year shareholder return policy for 2024 to 2026.”
The method and amount of the remaining shareholder returns, including cash dividends and share buybacks and cancellations, will be decided during a board meeting in January next year after its 2026 financial results are finalized.
Samsung Electronics paid 9.8 trillion won in regular dividends in both 2024 and 2025, totaling 19.6 trillion won over the two years. In 2025, it also paid 1.3 trillion won in special dividends, and bought back and canceled 8.4 trillion won worth of shares.
Separately, the company’s board also approved the purchase of about 15 trillion won worth of its own shares for employee compensation. It said the buyback is also expected to enhance shareholder value.
Samsung Electronics’ chip division posted a record 89.2 trillion won in operating profit in the second quarter, highlighting the sharp improvement in earnings that has supported the company’s record shareholder returns.
The company has not yet announced a new shareholder-return policy for 2027.
The move comes after rival chipmaker SK hynix announced plans last week to buy back and cancel 40 trillion won worth of its shares, as strong artificial intelligence-driven demand boosts earnings and cash generation at major Korean memory chipmakers.
The two major chipmakers have now announced up to 150 trillion won in shareholder returns and share buybacks combined.